COMMISSION STAFF WORKING DOCUMENT KOSOVO* 2013 PROGRESS REPORT. Accompanying the document

EUROPEAN COMMISSION Brussels, 16.10.2013 SWD(2013) 416 final COMMISSION STAFF WORKING DOCUMENT KOSOVO* 2013 PROGRESS REPORT Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Enlargement Strategy and Main Challenges 2013-2014 {COM(2013) 700 final} * This designation is without prejudice to positions on status, and is in line with UNSCR 1244/1999 and the ICJ Opinion on the Kosovo declaration of independence. EN EN

TABLE OF CONTENTS 1. Introduction... 3 1.1. Preface... 3 1.2. Context... 3 1.3. Relations between the EU and Kosovo... 4 1.4. Normalisation of relations between Kosovo and Serbia... 5 2. Political criteria... 6 2.1. Democracy and the rule of law... 6 2.2. Human rights and the protection of minorities... 14 2.3. Regional issues and international obligations... 19 3. Economic criteria... 21 3.1. The existence of a functioning market economy... 21 3.2. The capacity to cope with competitive pressure and market forces within the Union... 26 4. European standards... 27 4.1. Internal market... 27 4.1.1. Free movement of goods... 27 4.1.2. Movement of persons, services and right of establishment... 29 4.1.3. Free movement of capital... 30 4.1.4. Customs and taxation... 30 4.1.5. Competition... 32 4.1.6. Public procurement... 32 4.1.7. Intellectual property law... 33 4.1.8. Employment and social policies, public health policy... 34 4.1.9. Education and research... 36 4.1.10. WTO issues... 37 4.2. Sectoral policies... 37 4.2.1. Industry and SMEs... 37 4.2.2. Agriculture and fisheries... 37 4.2.3. Environment and climate change... 39 4.2.4. Transport policy... 40 4.2.5. Energy... 41 4.2.6. Information society and media... 42 4.2.7. Financial control... 44 4.2.8. Statistics... 44 4.3. Justice, freedom and security... 45 1

4.3.1. Visa, border management, asylum and migration... 45 4.3.2. Money-laundering... 47 4.3.3. Drugs... 48 4.3.4. Police... 49 4.3.5. Fighting organised crime and terrorism... 50 4.3.6. Protection of personal data... 51 2

1. INTRODUCTION 1.1. Preface The Commission reports regularly to the Council and Parliament on the progress the countries of the Western Balkans region are making towards European integration, assessing their efforts to comply with the Copenhagen criteria and the conditionality of the Stabilisation and Association Process. This progress report, which largely follows the same structure as in previous years: briefly describes relations between Kosovo and the European Union; analyses the situation in Kosovo in terms of the political criteria; analyses the situation in Kosovo on the basis of the economic criteria; reviews Kosovo s capacity to implement European standards, i.e. to gradually approximate its legislation and policies with the acquis, in line with the Stabilisation and Association Process and the priorities set in the Feasibility study for a Stabilisation and Association Agreement between the European Union and Kosovo. 1 This report covers the period from October 2012 to September 2013. 2 Progress is measured on the basis of decisions taken, legislation adopted and measures implemented. As a rule, legislation or measures which are under preparation or awaiting parliamentary approval have not been taken into account. This approach ensures equal treatment across all reports and enables an objective assessment. The report is based on information gathered and analysed by the Commission. Many sources have been used, including contributions from the Kosovo authorities, the EU Member States, the EU rule of law mission (EULEX), European Parliament reports 3 and information from various international and non-governmental organisations. The Commission draws detailed conclusions regarding Kosovo in its separate communication on enlargement, 4 based on the technical analysis contained in this report. 1.2. Context To date, Kosovo has been recognised by 104 UN Member States, including 23 EU Member States. During the reporting period, the UN Secretary-General has issued four reports on Kosovo. In his reports, he has expressed appreciation for the key role of the European Union and the High Representative of the Union for Foreign Affairs and Security Policy in facilitating the negotiations that resulted in the First agreement of principles governing the normalisation of relations of 19 April. He commended the leadership in both Pristina and Belgrade for demonstrating a serious and steadfast commitment to this dialogue. The NATO-led Kosovo Force (KFOR) has continued to help ensure security in Kosovo. During the reporting period, its presence amounted to about 5 000 personnel. The Kosovo 1 2 3 4 This designation is without prejudice to positions on status, and is in line with UNSCR 1244/1999 and the ICJ Opinion on the Kosovo declaration of independence. COM(2012) 602 final. In April 2013, the Commission and the High Representative of the Union for Foreign Affairs and Security Policy issued an ad hoc joint report on specific issues on which the Council had, in December 2012, requested additional information, JOIN(2013) 8 final of 22.04.2013. The rapporteur for Kosovo is Ms Ulrike Lunacek. Enlargement Strategy and Main Challenges 2013-2014, COM(2013) 700. 3

police has progressively been taking over from KFOR the responsibility for protecting several cultural and religious sites. 1.3. Relations between the EU and Kosovo In June, the Council authorised opening of negotiations for a Stabilisation and Association Agreement between the EU and Kosovo. The negotiations will be formally opened this month. Prior to this decision, Kosovo needed to address a number of priorities set out in a feasibility study (October 2012). It needed to continue to implement in good faith all agreements reached between Belgrade and Pristina and to engage constructively on the full range of issues, with the facilitation of the EU. It also needed to take steps on several shortterm priorities in the area of the rule of law, public administration, protection of minorities and trade. In April, the Commission and the High Representative issued a joint report on Kosovo s progress. The report concluded that Kosovo had met all the short-term priorities outlined in the study. On this basis, the Commission submitted a proposal for a Council decision authorising the opening of negotiations on a Stabilisation and Association Agreement between the European Union and Kosovo. Kosovo now needs to focus on making progress in the following areas identified by the feasibility study to meet its obligations under a Stabilisation and Association Agreement: the rule of law, judiciary, public administration, electoral reform and the Assembly, human and fundamental rights, protection of minorities, trade and internal market issues, and phytosanitary and veterinary issues. Kosovo participates in the Stabilisation and Association Process and it has engaged constructively in the Stabilisation and Association Process Dialogue (SAPD). The 2013 cycle of SAPD meetings was completed by a plenary meeting and a civil society plenary meeting in July. In June, Kosovo engaged in a dialogue with the EU on public administration reform through a special group on public administration reform. A Structured Dialogue on the Rule of Law was launched in 2011 to facilitate and monitor progress in the rule of law. To date, two meetings have taken place, in May 2012 and February 2013. The visa liberalisation dialogue has continued during the reporting period. In February, the Commission issued a first report on Kosovo s efforts towards visa liberalisation and three meetings of senior officials have taken place. In December, Kosovo became a member of the European Bank for Reconstruction and Development (EBRD) and an EBRD Country of Operations. In May, Kosovo hosted a donors conference on sustainable energy. In June, the Council of Europe Development Bank (CEB) agreed for Kosovo to join. On 7 June, the European Investment Bank (EIB) signed a Framework agreement with Kosovo. The agreement allows the bank to proceed with the financing of projects in Kosovo and to provide technical assistance. The EIB s involvement will also facilitate the co-financing of projects with other donors and support the implementation of various instruments, such as the Western Balkans Investment Framework. Kosovo receives financial assistance under the Instrument for Pre-accession Assistance (IPA), the Instrument for Stability (IfS) and other sources of funding. Kosovo is participating in the IPA multi-beneficiary programmes. In 2013, a total of 71.4 million was allocated to Kosovo under the IPA annual programme. EU pre-accession assistance is focusing on support for the rule of law, the economy, trade and industry, and public administration reform. IPA assistance is implemented by the Commission and the EU Office. The Kosovo government and the Commission are currently preparing a comprehensive Country Strategy Paper for the period 2014-2020, which will provide a coherent and strategic framework for financial assistance under the new Instrument for Pre-Accession Assistance (IPA II). 4

As a follow-up to the Commission Communication Kosovo Fulfilling its European Perspective, 5 the Council authorised the Commission to negotiate a framework agreement with Kosovo to enable it to take part in EU programmes. In April, following Kosovo s acceptance of the text of the framework agreement, the Commission adopted a proposal to sign and conclude this agreement. The proposal is currently being discussed by the Council. In 2012, the EU rule of law mission, EULEX, was reconfigured. EULEX s mandate has been extended to June 2014. The mission was downsized by some 25% and currently operates with two sections: an Executive Division, which works on the mission s executive mandate; and a Strengthening Division, which concentrates on monitoring, mentoring and advising the Kosovo authorities. Overall, during the reporting period, Kosovo has maintained good cooperation with EULEX. It has also continued to be fully supportive of the Special Investigative Task Force investigation, consistent with their previous commitment in this regard. It thereby met the pertinent short-term priorities specified in the feasibility study. Kosovo needs to continue actively supporting implementation of the mandate of the mission, including that of the Special Investigative Task Force. 1.4. Normalisation of relations between Kosovo and Serbia Kosovo and Serbia have actively and constructively participated in an EU-facilitated dialogue, which was upgraded to a high-level political process with the facilitation of the High Representative following the 2012 elections in Serbia. Seventeen high-level meetings were attended by both Prime Ministers since October 2012. A meeting also took place between Presidents Nikolić and Jahjaga in February and they continued meeting in the context of various initiatives in June and July. Since January 2013, the meetings of the two Prime Ministers have focused on northern Kosovo and delivering structures which meet the security and justice needs of the local population in a way that ensures the functionality of a single institutional and administrative set up in Kosovo, in line with the December 2012 Council Conclusions. These discussions resulted in a First agreement on principles governing the normalisation of relations on 19 April, complemented in May by a comprehensive implementation plan. This landmark achievement represents a fundamental change in relations between the two sides. The First Agreement includes the following key elements: the establishment of an Association/Community of Serb municipalities in Kosovo; the principle of a single police force in Kosovo and the integration of all police in northern Kosovo into the Kosovo police service; the principle of integration and functioning of all judicial authorities within Kosovo s legal framework; and municipal elections to be held in the northern municipalities in 2013 facilitated by the OSCE municipal elections were subsequently convened on 3 November 2013 and will take place throughout Kosovo. The two parties have agreed that neither side will block, or encourage others to block the other side s progress in their respective EU paths. The parties also reached agreement on energy and telecommunications in September. Implementation of other agreements reached in the dialogue to date has continued. The agreement on representation of Kosovo was broadly implemented. Kosovo became a participant in the Regional Cooperation Council (RCC) in February. Full application of the principle of inclusive regional cooperation remains to be ensured; problems such as those encountered with the summit of the South East European Cooperation Process (SEECP) need to be avoided. As concerns IBM, joint interim crossing points have been opened at all six gates, which are up and running. December s agreement on the protection of religious and cultural heritage sites is being implemented, but recruitment of Kosovo Serbs needs to be increased. Implementation of an agreement on liaison arrangements has started in June. The 5 COM(2009) 534. 5

two sides also agreed to start collecting customs duties and to set up a fund for the development of northern Kosovo. Regarding free movement, the ID card travel regime is operational. The agreement on customs stamps continues to be implemented by both sides. There has also been good progress on civil registry; implementation should be completed by March 2014. Regarding cadastre, while implementation has started on the Serbian side, the legislation necessary to implement the agreement on cadastre has yet to be passed by the Kosovo side. Implementation of the agreement on acceptance of university diplomas is proceeding smoothly. Overall, Kosovo has taken significant steps towards visible and sustainable improvement of relations with Serbia, which have already led to a number of irreversible changes on the ground. During the reporting period, a number of security incidents occurred in northern Kosovo. On 19 September, one member of EULEX was killed in an attack on a EULEX convoy in northern Kosovo. The leadership of both Kosovo and Serbia condemned the attack in the strongest terms. On 8 March, EULEX initiated a joint operation with the Kosovo police and KFOR to stop a series of hand grenade attacks in northern Mitrovicë/Mitrovica. Further unrest was reported following the initialling of the 19 April agreement. Some in the Kosovo Serb leadership called for a referendum on the agreement and threatened to boycott its implementation. Pristina s restraint and inclusive approach, together with the positive role played by Belgrade, have prevented escalation. Serbian police stations operating in northern Kosovo were gradually closed between 14 June and 5 July with no sign of operational activity since then. Serbian authorities also ceased the payment of salaries to Kosovo Serb police officers already employed by the Kosovo police in the north. Since 15 July, parallel Serbian courts and prosecution offices stopped prosecuting and adjudicating criminal cases in Kosovo. The integration of Kosovo Serb police officers, judges and prosecutors previously employed by the Serbian authorities is ongoing. Municipal assemblies in the four northern municipalities were dissolved. 2. POLITICAL CRITERIA This section examines Kosovo s progress towards meeting the Copenhagen political criteria, which require stability of institutions guaranteeing democracy, the rule of law, human rights and respect for and protection of minorities. It also monitors regional cooperation, good neighbourly relations with enlargement countries and Member States and compliance with international obligations, such as cooperation with the International Criminal Tribunal for the former Yugoslavia. 2.1. Democracy and the rule of law Parliament Steps have been taken to improve the Assembly s oversight of the government, alignment of legislative plans between the Assembly and the government, and openness of the Assembly to civil society. The Assembly has been undertaking activities to scrutinise the work of the government, notably as regards the results of the dialogue between Belgrade and Pristina. The Assembly has also been able to demonstrate political and institutional unity on issues of key importance. In October 2012, the Assembly adopted a resolution on the dialogue for the normalisation of relations with Serbia. On 22 April, it approved a resolution on the First agreement of principles governing normalisation of relations. The Assembly ratified this agreement in June and adopted the law on amnesty in July. 6

The Assembly has increased the number of thematic parliamentary debates and interpellations of ministers. During the reporting period, the committees have undertaken further activities to monitor the implementation of laws and have produced reports, some of them based on Assembly members field visits. Public consultations and hearings with civil society and independent experts to prepare new legislation are becoming a frequent feature. The Assembly has opened a position for an officer for relations with civil society and donor coordination. In April, the Assembly adopted its work programme. This programme combines the 2013 government legislative agenda, the annual work plans for parliamentary committees and an action plan for negotiations on the Stabilisation and Association Agreement. The decision of the Assembly to debate the so-called Kiqina case (in which former members of the Kosovo Liberation Army were found guilty of murder) and an attempt to adopt a decision interfering with the judicial process was a setback for Kosovo s efforts to build strong and independent institutions of democratic governance. This is an issue of serious concern. Kosovo needs to finalise the electoral reform process that was launched in 2011. It needs to ensure that the legal framework for elections better reflects best practice in the EU and that implementation is in line with international standards. Oversight of the government needs to be improved, including follow-up to committee recommendations to ministries. The Assembly also needs to improve its understanding of its role in the supervision of independent institutions and regulatory authorities. In this regard, adequate mechanisms need to be set up. Unclear legal bases for reporting, weak coordination with the government in the selection of board members and failure to determine mechanisms for holding board members to account are among the key challenges that need to be addressed. This would help to ensure the timely appointment of independent and professional managers and members of the boards of these institutions. Further efforts by the Assembly and its committees are required to ensure control of the budget, especially in areas such as health, agriculture, social assistance, culture and education. More attention needs to be paid to the reports of the Office of the Auditor General. The committee on oversight of public finances also needs to develop a mechanism to follow up the recommendations it gives to budgetary organisations. The number of staff supporting the work of the committees has increased. The capacity of the committees to scrutinise draft laws remains limited. The Assembly s secretariat needs to ensure better coordinated input of its different departments to the committees. Draft laws as well as amendments to legislation need better screening for compliance with the acquis. The Assembly needs to improve the existing rules of procedure, especially to clarify the legal effect and meaning of various decisions made in plenary. Decoupling the vote on amendments and the final vote on a law in plenary needs to be considered. During Assembly and committee deliberations, some shortcomings and violations of the rules of procedure were noted (for example, insufficient time between tabling a proposal and its discussion in committee and in plenary). The financial independence of the Assembly has improved. The Assembly s budget committee has increased its involvement in the government s consultation on the draft budget of the Assembly. Further steps are needed to enhance the financial and administrative independence of the Assembly, notably by improving Assembly s rules of procedure, legislation on the Assembly, including a law, and separating its IT infrastructure from the government. 7

Overall, the Assembly continues to gradually build its capacities and to improve its role in democratic governance. The debate on the Kiqina case was a setback in this regard. The Assembly and its institutions need to focus on priorities identified in the feasibility study, notably electoral reform, oversight and control functions, and the financial and administrative independence of the Assembly. Government The Kosovo government has increased its capacity to address priorities of the European integration process. Follow-up to the short-term priorities of the feasibility study clearly shows this, as does preparation for negotiations of the Stabilisation and Association Agreement. The National Council on European Integration under the President s Office has continued to meet and pursue the objective of consensus-building on European integration. The government adopted an ambitious legislative strategy followed by an annual work plan. The legislative agenda remains subject to frequent changes. A clear institutional setup and delineation of responsibilities have contributed to better coordination of the EU agenda and its priorities within the government. Ministries have also started to follow new requirements for inter-ministerial consultations. This is a good basis to manage the gradually increasing workload of the European integration process. The government has improved compliance with rules of procedure. The introduction of an acquis compliance table is a step forward and needs to be used systematically. A system of concept papers preceding draft laws and policy decisions was put in place; a number of papers have been prepared. The government, in close cooperation with the Assembly, still needs to improve its capacity to verify and confirm acquis compliance of legislation. Forward planning and cost analysis of implementation of legislation remains a challenge. Strategies need to be better coordinated to avoid overlap and contradictions. The implementation of policies and legislation involving several ministries needs to be improved. The capacity to manage the EU integration agenda is unevenly spread across the government, especially in terms of quality of human resources. The fact that members of the government still fail to attend parliamentary question sessions or relevant meetings of parliamentary committees continues to be an issue of concern. This prevents the Assembly from conducting its oversight function. Ministries also need to improve their follow-up to requests from parliamentary committees. Local government has also improved its capacity. This includes examples of addressing returns and reintegration, transparency of information on management and budget, and reporting on municipal decision-making. There have been examples of improvements in the organisation of municipal administration. In October 2012, the Mitrovicë/Mitrovica North Administrative Office set up by the Kosovo authorities became operational. The office has 54 employees, of whom about 70% are Serbs, some of whom have faced sporadic threats and attacks on their possessions during the reporting period. Municipalities would benefit from clearer guidance from central level and integrated planning (policy priorities coupled with budgeting). The work and decisions of municipalities need to be more transparent. The small and rural municipalities established in 2009 2010 need alternative institutional solutions so that they can deliver equitable access to services for their constituents. Land management needs to be addressed to ensure their economic development. The November municipal elections will take place under the current legal framework in the absence of progress on electoral reform. On the basis of the 19 April agreement, the Association/Community of Serb majority municipalities in Kosovo is foreseen to be established following the municipal elections. This will require consistent efforts from all concerned. 8

Overall, the fundamental structures for governance at both central and local levels are in place. Capacity varies across different ministries. The municipal level is still weak. Data collection, financial impact assessments, policy objectives and inter-ministerial coordination need to play a greater role in the legislative process. Further efforts are needed to improve implementation of legislation, accountability and transparency of government, including at municipal level. Local authorities need more support to continue the process of decentralisation. Public administration Kosovo met the short-term priorities of the feasibility study in the area of public administration. It adopted secondary legislation of laws on the civil service and on salaries for civil servants. Kosovo has started implementing the strategy and the action plan on public administration. In June, through the special group on public administration, Kosovo started a dialogue with the EU on these matters. In December, the Assembly adopted an interim salary scale for selected independent oversight institutions such as the Ombudsperson, the Independent Oversight Board for the Civil Service and the Independent Media Commission. The Office of the Auditor General has continued to focus on promoting sound financial management in public administration and accountability across government. This includes building up a sustainable performance auditing function. Regional and international cooperation of the office has increased. The Kosovo Institute for Public Administration has continued to provide training for civil servants. The implementation of the strategy and action plan on public administration reform continues to be a major challenge for Kosovo. It requires further human and budgetary resources. The planning of activities needs to be adjusted to reflect the available resources. The implementation of the law on salaries of civil servants has been put on hold pending the finalisation of job classification. The performance appraisal for civil servants needs to start. New legislation is needed to regulate salaries for high officials and to reform the salary system in important sectors such as education and health. Kosovo authorities need to ensure appropriate follow-up to the recommendations of the Independent Oversight Board for the Civil Service. Currently, this is not the case for a significant number of the recommendations. The share and the distribution of civil servants belonging to minorities across ministries need to be in line with the legislation. Kosovo also needs to review the organisation of public administration at the municipal level, notably delegated competences and the appointment of directors. Overall, Kosovo enacted secondary legislation of laws on the civil service and on salaries of civil servants. Public administration reform continues to be characterised generally by a lack of professionalism and motivation on the part of staff. There is also political interference in the civil service. Kosovo needs to focus on priorities set out in the feasibility study, notably implementing legislation, as well as the strategy and action plan. Ombudsman Kosovo met the short-term priorities of the feasibility study in relation to the Ombudsperson. The number of staff and budget of the Ombudsperson institution have been increased. The government allocated new premises to the institution. It now has the necessary resources to perform its duties. The government respected the Ombudsperson s independence by not modifying the office s budget when submitting the overall budget to the parliament. The budgetary independence of the Ombudsperson needs to be made sustainable. During 2012, the Ombudsperson received 20% more petitions from the public than the previous year. Kosovo authorities need to improve their implementation of the Ombudsperson s recommendations. 9

Civilian oversight of the security forces The parliamentary Committee on Internal Affairs, Security and Supervision of the Kosovo Security Force has scrutinised a greater number of laws than in the previous reporting period. Oversight of the Kosovo Intelligence Agency has also improved and the relevant parliamentary committee has met more frequently. Only members of parliament with clearance issued by an office under the direct responsibility of the intelligence agency may take an effective role in the committee. Further efforts are needed to ensure adequate civilian oversight of the security forces. The Assembly needs to improve its professionalism and expertise on security matters. In July, the North Atlantic Council declared that the Kosovo Security Force had reached full operational capacity. Civil society The task forces on European integration and the National Council on European integration have continued to involve representatives of local civil society. The government s strategy and action plan on cooperation with civil society for 2013-2017 was prepared with the involvement of civil society representatives. It was adopted in July. Cooperation between civil society organisations and the institutions of Kosovo continues to be ad hoc. Even when public consultations on draft legislation take place, follow-up is often unsatisfactory. There is limited public funding for e.g. social services delivered by civil society on behalf of the authorities. The central and local authorities need to improve cooperation with civil society, notably as regards defining and executing public policies. Judicial system In January, a new court system was introduced and a new criminal code and criminal procedure code entered into force. The Supreme Court issued a formal opinion to rectify ambiguities concerning the retroactive application of transitional provisions regarding the admission of pre-trial evidence in cases that started before the new procedure code entered into force. Focus now needs to be on implementation of the legislation. Implementing legislation on the certification system for translators and interpreters needs to be adopted. In general, a review of the new court and prosecutorial system is needed to assess progress. A law on the state advocacy office was adopted. The Kosovo Judicial Institute has continued to provide legal education training focusing on capacity building. In July, an entry exam for judges and prosecutors was successfully organised. Kosovo concluded bilateral agreements on mutual legal assistance with Albania and Italy. The Ministry of Justice acts on requests for mutual legal assistance received from non-recognising countries, either directly or via EULEX. The United Nations Interim Administration Mission in Kosovo (UNMIK) remains the formal point of contact with Interpol. Kosovo needs to enhance its capacities and experience to be an effective partner in the context of mutual legal assistance. As regards independence and impartiality, cases of political interference in the judiciary were reported. This includes points made by the government and the Assembly on rulings regarding war crimes (Kleçka and Drenica group). This was also noted by the Supreme and Constitutional Courts. There was also an attempt by the Assembly to investigate a case that had been through all the steps of the judicial procedure (Kiqina case). In reviewing a criminal case (involving a municipal president) in January, the Constitutional Court, by taking up the case and referring it back to the Supreme Court for review, wrongfully suggested that it could take upon itself to act as an (additional) court of last instance. In 2012, 0.47% of GDP was spent on the budget for the judiciary. Both Judicial and Prosecutorial Councils adopted codes of ethics. The Judicial and Prosecutorial Councils have strengthened the necessary procedures and signed memoranda of understanding with the police to ensure appropriate security and protection measures for judges, prosecutors and 10

other judicial staff. Kosovo still needs to do more to mitigate the risks of indirect forms of intimidation or influence on staff in the judiciary and on witnesses. Two members of the Judicial Council still need to be appointed. To guarantee judicial independence, a substantial majority of the Judicial Council s members need to be elected by their peers. Kosovo needs to make the necessary changes to allow for this. The Constitutional Court has nine judges including three international judges. Not all positions on the Constitutional Court have been filled, which may pose a challenge to constitute the quorum of seven judges. The Judicial Council has filled 334 out of a total of 404 positions and 125 of the 146 prosecutor positions are filled. Both Judicial and Prosecutorial Councils continue to face challenges in filling vacancies reserved for persons belonging to minorities. The Judicial and Prosecutorial Councils need to ensure that persons nominated for the position of judge or prosecutor have the necessary professional experience and meet the conditions set. Passing the initial legal education programme needs to remain part of the eligibility criteria for a candidate to qualify as a judge or a prosecutor. As regards accountability, the Judicial Council adopted implementing legislation on the organisation and activities of the Council, and on the appointment and evaluation of judges. A panel for the evaluation of the performance of judges has conducted the first evaluations in view of the confirmation of judges initial mandates. Disciplinary sanctions were imposed in 14 cases by the Judicial Council (in 2013) and in 11 cases by the Prosecutorial Council (2012 and 2013). None of them resulted in dismissal. The code of conduct for judges needs to be strengthened. The disciplinary regulations in both Councils need to be adjusted to ensure that the disciplinary procedures and policies on the fight against corruption in the judiciary lead to concrete results. As regards efficiency, the Judicial Council has established the new court structure. It swiftly appointed new presidents of the court of appeal and basic courts. The Judicial and Prosecutorial Councils adopted regulations on the internal organisation and operation of the courts and prosecutor s offices, thus finalising the framework for the implementation of the court reform. Delays in the transfer of cases have been kept to a minimum. The workload of the courts is under review. Court administration as well as case allocation in prosecution offices and courts needs to be improved. The current lack of available courtrooms is expected to improve in the future as a result of ongoing renovations. The new prosecutorial system required setting up a new appellate prosecution office and a switch to a system of seven basic prosecution offices in addition to the special prosecution. The Prosecutorial Council and the State Prosecutor generally transferred case files within a reasonable time. However, some cases, including election fraud cases, were not transferred until March. There has only been limited progress with regard to cases involving fraud during the general elections of 2010. All 232 indictments have been filed, but as of September 2013, a substantial number remain to be adjudicated. The implementation of the two-year strategy to reduce the backlog of cases accumulated until December 2008 resulted in a backlog reduction of about 65%, leaving about 63 500 cases unresolved. In addition, Kosovo needs to address the backlog of cases that has built up over more recent years. At the end of 2012, the total number of cases pending before the Kosovo basic courts was over 218 740. This increased to over 235 000 cases in 2013, partly due to court reform, which led to the inclusion of minor offences cases in the statistics. In the current case registration system, it is possible that the same case is counted several times. Case allocation and management systems still need to be fully implemented. There is a large number (over 100 000) of decisions that still need to be executed. As part of the strategy to fight corruption and organised crime, a new law on enforcement procedures introduced a 11

private bailiff system with the aim to reduce the execution backlog. Kosovo has to ensure an adequate oversight of these private actors. At the Mitrovicë/Mitrovica basic court only criminal trials have been held by EULEX during the reporting period. The work of the special prosecution has slowed down; the limited number of local prosecutors are unable to take on new cases, due to the existing workload. Seven out of fifteen positions for local prosecutors need to be filled. Kosovo needs to increase efforts to recruit them, since its work and jurisdiction are vital for the handling of important, high-level and sensitive cases. At the moment, there is a lack of capacity and commitment to investigate crimes that fall under the jurisdiction of the special prosecution. To ensure better access to justice, legal aid offices have been established in 11 municipalities. Kosovo also has a mobile legal aid clinic. Kosovo authorities need to pay particular attention to access to justice for victims of human trafficking, women and children. A total of 99 mediators are licenced and six mediation centres operate across Kosovo. During 2012 and 2013, more than 300 cases have been referred to the mediation centres. Almost half of the cases have been successfully completed during the mediation process. Overall, Kosovo needs to address priorities of the feasibility study. Political interference in the work of the judiciary remains a serious concern. The Judicial and Prosecutorial Councils need to respond decisively to attacks against individuals and the judicial institutions. Other branches of government need to do the same. Security needs of judicial personnel, witnesses and plaintiffs need to be addressed. Kosovo needs to ensure the efficient implementation of legislation. It needs to pay particular attention to the harmonisation of primary and implementing legislation. The jurisdiction of the special prosecution needs to be maintained and local capacity strengthened. The backlog of cases requires continued efforts. Improved data processing and case management would help in this regard. Fight against corruption The anti-corruption legislative framework is largely in place. Amendments to the law on political party financing were adopted addressing earlier shortcomings (e.g. regulating donations from legal entities providing goods and services to government bodies). The revised Criminal Code introduced criminal offences for conflict of interest, and for false declarations of assets by public officials, or their failure to report assets. In February, the Assembly adopted a new anti-corruption strategy and action plan (2013-2017), a short-term priority of the 2012 feasibility study. For the first time, a corruption risk assessment covering priority sectors has been attached to the strategy. During the reporting period, the special anti-corruption department of the Kosovo police has launched six investigations in cooperation with EULEX. They covered criminal acts such as abuse of official duty, giving and receiving bribes, and fraud. The Anti-Corruption Agency has continued to coordinate implementation of the strategy, of the laws on declaration of assets by public officials and on prevention of conflict of interest. The Agency has sufficient capacity to perform its current tasks. Cooperation between the Agency and the prosecution has improved. The prosecution now provides systematic feedback to the Agency on the follow-up of cases. The Prosecutorial Council also set up a network of prosecutors coordinating corruption in six basic prosecution offices and in the Pristina office. There has been an increase in criminal cases against persons in high-level positions both at municipal and central levels. Continued efforts are necessary to ensure the accountability of highranking officials and politicians. In 2012, less than 1% of public officials failed to make a declaration of assets. Pertinent cases have been sent to the prosecution. When it comes to verification, the agency first does a 12

preliminary systematic search for missing information or errors. Subsequently, on roughly 20% of the submissions, substantive controls are undertaken, with a focus on those categories of officials with a high-degree of responsibility or exposed to sensitive positions (such as public procurement), or on cases that appear suspicious. First steps have been taken to improve reporting on the fight against corruption. In November, the Prosecutorial Council adopted a strategy on inter-institutional cooperation in the fight against organised crime and corruption. The main issue of concern remains the implementation of the legal and policy frameworks. Cooperation among the agencies involved continues to be weak. False declarations and conflicts of interest are still treated as administrative offences, whereas the Criminal Code provides for a criminal offence. This discrepancy needs to be addressed as a matter of priority. The number of cases followed up by the prosecution remains below 10%. Only very few cases result in a filed indictment. To improve implementation, other authorities (tax administration, financial investigation unit and prosecution) need to provide the necessary information to the Anti-Corruption Agency. The new anti-corruption strategy is not underpinned by a budget or an estimation of necessary resources. It lacks binding mechanisms for the institutions to comply with their responsibilities. Implementation of the strategy and action plan requires more ownership by all involved actors, continuous support at the highest political level and commitment from all involved. The risk assessment of vulnerable areas needs to be revised regularly. On prevention of conflict of interest, the agency noted that more than 800 public officials have more than two jobs (some up to five). The agency recommended that officials are not allowed to hold at the same time more than one job involving a certain degree of (financial) responsibility. There has been no follow-up on this advice. Moreover, there are still cases in which persons do not stop their active involvement in a private business, or they do not provide the Agency with the required declaration to this end when taking up a public post. The institutional setup to deal with corruption remains complex. The system is fragmented, with unclear roles and responsibilities. There is no common system of statistics. The National Anti-Corruption Council was set up with the aim to ensure responsibility and accountability of involved institutions in the fight against corruption. However, the council does not meet regularly. Additionally, its meetings are in public and the number of participants has increased. This raises concerns with regard to its effectiveness and authority. The anti-corruption taskforce within the special prosecution, composed of local and international prosecutors, Kosovo police investigators and anti-corruption experts, lacks two out of five local prosecutors. This considerably slows down investigations, even if two prosecutors have been allocated to the taskforce on a temporary basis. Furthermore, taskforce members from the police lack office space and essential equipment. Forensic financial accounting expertise is missing. In addition to the taskforce, local prosecution offices are also responsible for the fight against corruption. Their results have been limited. Overall, Kosovo met the short-term priorities of the feasibility study. It adopted a new anticorruption strategy and Kosovo has maintained commitment to the fight against corruption. To meet its obligations under the Stabilisation and Association Agreement, Kosovo needs to implement the legislative and policy frameworks, and provide concrete evidence of results in the fight against corruption. Effective prevention of corruption at all levels of society needs to be given higher priority. Fight against organised crime During the reporting period, Kosovo met the short-term priorities of the feasibility study. Its political leaders and law enforcement and judicial authorities maintained their commitment to 13

deliver results in the fight against organised crime. They have continued to work in partnership with EULEX on practical operational matters on a daily basis. Kosovo adopted new strategies and action plans against organised crime, narcotics and terrorism. It also has a strategy and an action plan against trafficking in human beings. The Assembly also approved a law on the confiscation of assets and revised the law on the prevention of money laundering and financing of terrorism. The Compact on joint rule of law objectives was signed in November by Kosovo, the EUSR and EULEX. As set out in the feasibility study, to meet its obligations under the Stabilisation and Association Agreement, Kosovo needs to focus on implementing the policy and legislative frameworks. It needs to provide concrete evidence of results in fighting organised crime, especially on prevention of and fighting against trafficking in human beings, drugs (and their precursors), and weapons trafficking. The reliability of statistics needs to improve. For a detailed analysis of the developments in the fight against organised crime, see 4.3 Justice, Freedom and Security. 2.2. Human rights and the protection of minorities Kosovo s constitution lists international human rights instruments which are directly applicable in Kosovo and form an integral part of Kosovo s legal framework. As Kosovo is neither a party to any of the international human rights instruments, nor a member of the Council of Europe, its reporting remains ad hoc. As regards promotion and enforcement of human rights, the relevant Assembly committee has been increasingly holding the government accountable. This relates in particular to the unsatisfactory implementation of recommendations issued by the Ombudsperson. The key challenge for Kosovo is to improve implementation of the existing legal framework and enforcement of decisions remedying human rights infringements. The complex and overlapping institutional setup for reporting on these rights, as well as their promotion and protection, needs to be simplified and streamlined, both at central and local levels. Kosovo has continued to address the prevention of torture and ill-treatment in prisons, including the fight against impunity. The correctional services received two complaints of torture and ill-treatment in 2012. After investigation both cases were dismissed. In 2013, no complaints have been received. A steering committee composed of the Ombudsperson, the Kosovo Rehabilitation Centre for Torture Victims and the Council for the Defence of Human Rights is monitoring the situation in this regard in detention centres. The members of the steering committee need to further enhance their experience and resources to carry out balanced and accurate inspections. The prison system, in particular the Dubravë/Dubrava Correctional Centre, continues to face significant challenges. Medical treatment is insufficient. Important concerns relate to corruption, nepotism, smuggling and discrimination in the prison system. Some prisoners enjoy extended privileges and abuse the system. This increases the risk that they may be able to carry on in criminal activities from the prisons, including intimidating witnesses. Kosovo also needs to develop adequate categorisation of prisoners. The internal complaints mechanism needs to be made more efficient and effective. On freedom of expression, the Assembly modified the two articles of the Criminal Code on criminal liability of the media and protection of journalists sources, as set out in the feasibility study. Kosovo authorities (the President, the Office of Prime Minister and Minister for European Affairs) promptly condemned and demanded an investigation into attacks on the offices of the magazine Kosovo 2.0, which had published a special issue focusing on sex topics, including sexual orientation and gender identity issues. An EULEX prosecutor and a 14

prosecutor from the Pristina basic prosecution office filed an indictment against three Kosovo citizens for their involvement in the attack on Kosovo 2.0. Legislation covering freedom of expression is fragmented (14 laws in total) and ineffective. The laws establish a total of ten institutions responsible for this area. Implementing legislation is necessary to define the exact scope and activities of these institutions. Currently, there is overlap. Kosovo does not have a comprehensive law on the media, leaving key areas regarding operation of the media unregulated. This includes issues such as the autonomy of journalists and editors, protection of professional standards in journalism, the right to conscientious objection for journalists, and the right of reply and correction for citizens. Threats against journalists and editors have continued to be reported and journalists continue to face political pressure and intimidation. The Association of Professional Journalists of Kosovo was active in condemning attacks against media and journalists throughout 2012. However, following the appointment of a new board in April, several board members left, citing close ties between the chairwoman and business and political representatives. Professional standards in both broadcast and print journalism need to be improved, with a particular focus on online media. The independence of the Independent Media Commission has been hindered by a lack of resources, and political interference in the appointments of the commission and its board of appeals. One member of the commission and two members of the board of appeals were appointed despite their ineligibility. One member of the commission is still to be nominated. Much of the commission s work was paralysed by its council s unlawful decision to dismiss the CEO. This decision was reversed by the court. Kosovo public broadcaster s (RTK) long-term financial sustainability is still uncertain. The current funding model is based exclusively on the state budget, which undermines RTK s editorial independence. The RTK s board should have eleven members public personalities who have demonstrated political impartiality. Three members have yet to be appointed, as a consequence of politicisation of their appointment by the Assembly. (See 4.2.6 Information Society and Media) Freedom of assembly and association continues to be exercised in Kosovo. During the reporting period, there have been several public protests and gatherings against the government and assembly decisions. Public and opposition movements are free to express their discontent with government policies. Freedom of thought, conscience and religion continues to be exercised in Kosovo. The Orthodox seminary functions well in its historical premises in Prizren. Kosovo has been ready to support the reconstruction of Serbian Orthodox Church sites. Contacts between religious leaders of the Kosovo Albanian Catholic Church, Islamic leaders and Serbian Orthodox leaders have been more regular and relations have been improving. A Catholic cathedral is being constructed in the centre of Pristina. Kosovo police has been taking over responsibility for the protection of historical and religious sites from KFOR. To date, only Visoki Dečani Monastery remains under KFOR protection. The protection of the Peć Patriarchate was transferred from KFOR to Kosovo police in August. A number of religious heritage sites have been subject to petty theft and vandalism, including Serbian Orthodox churches and Orthodox and Muslim cemeteries. In February, the widespread desecration of Serbian Orthodox cemeteries revealed the vulnerability of sites of value to the Serbian community in Kosovo during times of political strain. The mechanisms for reporting and following up such activities need to be improved. As regards women s rights and gender equality, the government adopted implementing legislation for the law on protection against domestic violence. The Judicial Institute has 15